*By Carlo Versano* Travel-booking app Hopper is carving out a lucrative niche in a crowded market by combining artificial intelligence and push notifications to woo flexible travelers. And Dakota Smith, head of growth and business, said the start-up is "going all in" on A.I. technology. After completing a $100 million Series D round of funding, the company, founded back in 2007, is now [valued](https://techcrunch.com/2018/10/03/hopper-raises-100m-more-for-its-ai-based-travel-app-now-valued-at-780m/) at close to $800 million. It's building its A.I. "brain" to compete with industry giants like Kayak, owned by Booking.com ($BKNG), and Google ($GOOGL) in an area that machine learning is beginning to radically change. Hopper uses A.I. and predictive analysis to forecast flight prices and advise users what the tech "thinks" will be the proper moment to buy. That isn't a particularly new idea ー Kayak has allowed users to sign up for price alerts for years ー but Hopper's fully-mobile experience and use of push notifications has distinguished it from competitors, many of which rely on web-based user experiences that are more difficult to "re-engage" with, Smith said. "It's hard for one player to capture all of the intent," Smith said in an interview with Cheddar Monday. He added that the "true intent" of a trip ー a wedding versus a weekend getaway, for example ー will determine how and when a traveler makes his or her plans. Figuring out engagement is one of the key to Hopper's success, as travelers have not typically shown fealty to one booking website in the past. But people interact with mobile apps differently and use push notifications in a way that keeps them engaged with apps they find useful. The typical Hopper user visits the app 20 times in preparation for a purchase, Smith said. A full quarter of them actually change their tickets based on the app's recommendations. That data-driven approach has gained Hopper a following among flexible travelers who use the "Watch" feature to set parameters for an upcoming trip months out and then wait for the precise moment when the A.I.-driven engine suggests pulling the trigger. Sixty percent of the time, the app recommends waiting, Smith noted. In addition to investing in its technology, Hopper will use some of its new funds to expand into international markets, where Smith said the app has been growing organically, despite any infrastructure in place. For full interview [click here](https://cheddar.com/videos/hoppers-big-funding-jump).

Share:
More In Business
Is U.S. Restaurants’ Breakfast Boom Contributing to High Egg Prices?
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
Trump Administration Shutters Consumer Protection Agency
The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought is the newly installed director of the Office of Management and Budget. Vought directed the CFPB in a Saturday night email to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama created it following the 2007-2008 financial crisis.
Load More